THE MAJOR PORT AUTHORITIES ACT, 2021 
_______________ 

ARRANGEMENT OF SECTIONS 

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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, commencement and application 
2.  Definitions. 

CHAPTER II 
BOARD OF MAJOR PORT AUTHORITY 

3.  Constitution and composition of Board of Major Port Authority. 
4.  Qualifications of Chairperson, Deputy Chairperson and Members of Board. 
5.  Disqualification  of  Chairperson,  Deputy  Chairperson  and  Member  from  office  in  certain 

circumstances. 
 Term of office of Chairperson, Deputy Chairperson and Members. 

6. 
7.  Disclosure of interest. 
8.  Resignation of Members. 
9.  Removal from office of Chairperson, Deputy Chairperson and Members. 
10.  Filling of casual vacancies. 
11.  Honorarium payable to Independent Members. 
12.  Powers and duties of Chairperson, Deputy Chairperson and Members. 
13.  Meetings of Board. 
14.  Committees of Board. 
15.  Delegation of powers. 
16.  Restriction of re-employment. 
17.  Vacancies, etc., not to invalidate proceedings of Board. 
18.  Power to make appointments. 
19.  Authentication of orders and other instruments of Board. 

CHAPTER III 
MANAGEMENT AND ADMINISTRATION 
A. STAFF OF MAJOR PORT AUTHORITY 

20.  List of staff of Board. 

B. PROPERTY OF CONTRACTS 

21.   Board to be deemed as successor of Board of Trustees of Major Port. 
22.  Usage of port assets by Board. 
23.   Procedure when immovable property cannot be acquired by agreement. 
24.  Contracts by Board. 

25.  Master Plan. 
26.  Powers of Board in respect of planning and development. 

C. PLANING AND DEVELOPMENT 

D. IMPOSTION OF RATES 

27.  Scale of rates for assets and services available at Major Port. 
28.  Board's lien for rates. 
29.  Ship-owner's lien for freight and other charges. 
30.  Sale of goods and application of sale proceeds in certain cases. 
31.  Recovery of rates and charges by distraint of vessel. 
32.  Application to Adjudicatory Board. 

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CHAPTER IV 
POWER OF BOARD OF MAJOR PORT AUTHORITY IN RESPECT OF LOANS AND SECURITIES 
A. FINANCIAL POWERS OF BOARDS OF MAJOR PORT AUTHORITIES 

SECTIONS 

33.   Power to raise loans and issue securities. 
34.  Endorsements to be made on security itself. 
35.  Endorser of security not liable for amount thereof. 
36.  Recognition as holder of port securities in certain cases and legal effect thereof. 
37.  Discharge in certain cases. 
38.  Security for loans taken out by Boards of Major Port Authorities. 
39.  Power of Board to repay loans to Government before due date. 
40.   Establishment and application of sinking fund. 
41.   Existing loans and securities to continue. 

B. GENERAL ACCOUNTS OF MAJOR PORT AUTHORITIES 

42.  General accounts of Board. 
43.  Application of money in general accounts. 

44.  Accounts and audit. 

C. ACCOUNTS AND AUDITS 

CHAPTER V 
SUPERVISION OF CENTRAL GOVERNMENT 

45.  Administration report. 
46.  Power of Central Government to order survey or examination of works of Board. 
47.  Power of Central Government to restore or complete works at cost of Board. 
48.  Power of Central Government to take over management of Board. 
49.  Laying of report. 
50.  Power of Central Government to exempt from obligation to use port assets. 
51.  Board not to sell, alienate or divest its assets, properties, rights, powers and authorisations 

without sanction of Central Government. 

52.  Remedies of Government in respect of loans made to Board. 
53.  Power of Central Government to issue directions. 
CHAPTER VI 
CONSTITUTION OF ADJUCATORY BOARD 

54.  Constitution of Adjudicatory Board. 
55.  Composition of Adjudicatory Board. 
56.  Qualifications, terms and conditions of service of Presiding Officer and members of 

Adjudicatory Board. 

57.  Removal and suspension of Presiding Officer and members of Adjudicatory Board. 
58.  Powers and functions of Adjudicatory Board. 
59.  Bar of jurisdiction of any court. 
60.  Review and appeal. 
61.  Officers and employees of Adjudicatory Board. 

62.  General provision for punishment of offences. 
63.  Offences by companies. 

CHAPTER VII 
PENALTIES 

CHAPTER VIII 
MISCELLANEOUS 

64.  Cognizance of offences. 
65.  Protection of action taken in good faith. 
66.  Employees of Board or Adjudicatory Board to be public servants. 
67.  Application of other laws not barred. 
68.  Power to evict certain persons from premises of Board. 
69.  Alternate remedy by suit. 
70.  Corporate Social Responsibility and development of infrastructure by Board. 

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SECTIONS 

71.   Power of Central Government to make rules. 
72.  Power of Board to make regulations. 
73.  Laying of rules and regulations. 
74.  Power to remove difficulties. 
75.  Repeal and savings. 
76.  Transitional provision. 

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THE MAJOR PORT AUTHORITIES ACT, 2021 

ACT NO. 1 OF 2021 

An Act to provide for regulation, operation and planning of Major Ports in India and to vest 
the administration, control and management of such ports upon the Boards of Major Port 
Authorities and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Seventy-Second Year of the Republic of India as follows:–– 

[17th February, 2021.]  

CHAPTER I 

PRELIMINARY 

1.  Short  title,  commencement  and  application.—(1)  This  Act  may  be  called  the  Major  Port 

Authorities Act, 2021. 

(2) It shall come into force on such date1 as the Central Government may, by notification, in the 

Official Gazette, appoint. 

(3) It shall apply to the Major Ports of Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru 
(Nhava  Sheva),  Kolkata,  Mormugao,  Mumbai,  New  Mangalore,  Paradip,  V.O.  Chidambaranar 
(Tuticorin) and Visakhapatnam. 

2. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a)  “Adjudicatory  Board”  means  the  Board  constituted  by  the  Central  Government  under                     

sub-section (1) of section 54; 

(b) “Board” means the Board of Major Port Authority constituted by the Central Government in 

accordance with sub-section (1) of section 3 for each Major Port under this Act; 

(c) “capital reserves” for the purpose of this Act, shall mean the total of the reserves excluding 
the  reserves  set  forth  in  sub-section  (1)  of section  43 and  the  value  of  the  current  assets  of  the 
Board in the preceding financial year; 

(d)  “Chairperson”  means  the  Chairperson  of  the  Board  appointed  under  sub-section  (1)  of 

section 4; 

(e)  “Deputy  Chairperson”  means  the  Deputy  Chairperson  of  the  Board  appointed  under  sub-

section (1) of section 4; 

(f)  “dock”  includes  all  basins,  locks,  cuts,  entrances,  graving  docks,  graving  blocks,  inclined 
planes,  slipways,  gridirons,  moorings,  transit-sheds,  warehouses,  tramways,  railways  and  other 
works and things appertaining to any dock, and also the portion of the sea enclosed or protected by 
the arms or groynes of a harbour; 

(g) “foreshore”, in relation to a Major Port, means the area between the high-water mark and 

the low-water mark relating to that Major Port; 

(h) “goods” includes livestock and every kind of movable property; 

(i) “grave emergency” means a condition as determined by the Central Government wherein the 
Board  is  unable  to  discharge  its  duties  appropriately  and  includes  acts  of  sedition,  non-
performance, unlawful and illegal actions, negligence and financial misappropriation; 

(j)  “high-water  mark”,  in  relation  to  a  Major  Port,  means  a  line  drawn  through  the  highest 

points reached by ordinary spring-tides at any season of the year at that Major Port; 

1. 3rd November, 2021, Vide notification No. S.O. 4504 (E), dated 29th October, 2021, see Gazette of India, Part II, sec. 3(ii). 

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(k) “immovable property” includes wharfage-rights and all other rights exercisable on, over, or 

in respect of, any land, wharf, dock or pier; 

(l)  “Independent  Member”  means  a  Member  of  the  Board  appointed  under  sub-section  (2) 

of section 4; 

(m) “Indian Ports Act” means the Indian Ports Act, 1908 (15 of 1908); 

(n) “land” includes the bed of the sea or river below high-water mark, and also things attached 

to the earth or permanently fastened to anything attached to the earth; 

(o) “low-water mark”, in relation to a Major Port, means a line drawn through the lowest points 

reached by ordinary spring-tides at any season of the year at that Major Port; 

(p)  “Major  Port”  or  “Major  Port  Authority”  means  the  Major  Port  as  defined  in  clause  (8) 

of section 3 of the Indian Ports Act; 

(q)  “Major  Port  approaches”,  in  relation  to  a  Major  Port,  means  those  parts  of  the  navigable 

rivers and channels leading to the Major Port, where the Indian Ports Act is in force; 

(r) “master”, in relation to any vessel or any aircraft making use of any Major Port, means any 
person having for the time being the charge or control of such vessel or such aircraft, as the case 
may be, except a pilot, harbour master, assistant harbour master, dock master or berthing master of 
the Major Port; 

(s)  “Member”  means  the  Member  of  the  Board  appointed  under  sub-sections  (2)  and  (3) 

of section 4; 

(t)  “notification”  means  a  notification  published  in  the  Official  Gazette  and  the  expression 

“notify” and “notified” shall be construed accordingly; 

(u) “Presiding Officer” means the Presiding Officer of the Adjudicatory Board appointed by the 

Central Government under section 55; 

(v) “owner”, — 

(i)  in  relation  to  goods,  includes  any  consignor,  consignee,  shipper  or  agent  for  the  sale, 

custody, loading or unloading of such goods; and 

(ii) in relation to any vessel or any aircraft making use of any Major Port, includes any part-

owner, charterer, consignee, or mortgagee in possession thereof; 

(w)  “pier”  includes  any  stage,  stairs,  landing  place,  hard,  jetty,  floating  barge,  transhipper  or 

pontoon and any bridges or other works connected therewith. 

Explanation.— For the purposes of this clause, the term “transhipper” means a floating craft or 
vessel, whether dumb or self-propelled, on which gears are provided for discharging cargo from a 
barge or wharf and loading it into a ship; 

(x) “port assets” means any asset within the port limits including land, movable or immovable 
property or any other property, whether tangible or intangible, owned by or vested with the Board 
through the Central Government or the State Government, as the case may be; 

(y)  “port  limits”  in  relation  to  a  Major  Port,  means  the  limits  including  any  piers,  jetties, 
landing-places,  wharves,  quays,  docks  and  other  works  made  on  behalf  of  the  public  for 
convenience  of  traffic,  for  safety  of  vessels  or  for  the  improvement,  maintenance  or  good 
governance of the Major Port and its approaches whether within or without high-water mark, and 
subject to any rights of private property therein, any portion of the shore or bank within fifty yards 
of  high-water  mark  and  the  area  of  such  Major  Port  as  may  be  determined  by  the  Central 
Government by way of notification from time to time; 

(z)  “port  related  use”  means  any  use  directly  or  indirectly  related  to  port  operations  and 

activities; 

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(za) “port securities” means the debentures, bonds or stock certificates issued by the Board in 
respect  of  any  loan  contracted  by  it  under  the  provisions  of  this  Act  or  issued  by  any  other 
Authority for the payment of which the Board is liable under this Act; 

(zb) “prescribed” means prescribed by rules made under this Act; 

(zc)  “Public  Private  Partnership  project”  means  the  projects  taken  up  through  a  concession 

contract entered into by the Board under sub-section (1) of section 24; 

(zd) “rate” includes any toll, due, rent, rate, fee, or charge leviable under this Act; 

(ze) “regulations” means the regulations made by the Board under this Act; 

(zf)  “vessel”  includes  anything  made  for  the  conveyance,  by  water,  of  human  beings  or  of 

goods; and 

(zg) “wharf” includes any wall or stage and any part of the land or foreshore that may be used 
for loading or unloading goods, or for the embarkation or disembarkation of passengers and any 
wall enclosing or adjoining the same. 

(2)  Words  and  expressions  used  but  not  defined  in  this  Act  and  defined  in  the  Indian  Ports  Act 

shall have the same meanings respectively assigned to them in that Act. 

CHAPTER II 

BOARD OF MAJOR PORT AUTHORITY 

3.  Constitution  and  composition  of  Board  of  Major  Port  Authority.—(1)  The  Central 
Government  shall,  within  a  period  of  ninety  days  from  the  date  of  commencement  of  this  Act,  by 
notification,  in  respect  of  each  Major  Port,  constitute  a  Board  called  the  Board  of  Major  Port 
Authority for that Major Port which shall consist of the following Members, namely:— 

(a) a Chairperson; 

(b) a Deputy Chairperson; 

(c) one Member each from the— 

(i) concerned State Government in which the Major Port is situated; 

(ii) Ministry of Railways; 

(iii) Ministry of Defence; and 

(iv) Customs, Department of Revenue; 

(d) not less than two and not exceeding four Independent Members; 

(e)  one  Member  not  below  the  rank  of  Director  nominated  by  the  Central  Government,                  

ex officio; and 

(f) two Members representing the interests of the employees of the Major Port Authority: 

Provided  that  until  the  constitution  of the  Board of Major  Port  Authority,  the Board  of Trustees 
constituted under section 3 of the Major Port Trusts Act, 1963 (38 of 1963) shall continue to function 
and shall cease to exist immediately after the constitution of the Board under this Act. 

(2) The Board of each Major Port Authority constituted under this Act shall be a permanent body 
having perpetual succession and a common seal with power, subject to the provisions of this Act, to 
acquire, hold or dispose of property, both movable and immovable, and to contract, and shall, by the 
said name, sue or be sued. 

4.  Qualifications  of  Chairperson,  Deputy  Chairperson  and  Members  of  Board.—(1)  The 
Chairperson and Deputy Chairperson of the Board shall be appointed by the Central Government on 
the recommendation of a Selection Committee consisting of such persons and in such manner, as may 
be prescribed. 

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(2) The Members of the Board as mentioned in clauses (c), (d) and (e) of sub-section (1) of section 
3 shall possess such qualifications and experiences and shall be appointed by the Central Government 
in such manner as may be prescribed. 

(3) The Members referred to in clause (f) of sub-section (1) of Section 3 shall be appointed by the 
Central Government from amongst serving employees of the Board of Major Port Authority in such 
manner  as  may  be  prescribed  after  obtaining  the  opinion  of  the  trade  unions,  if  any,  composed  of 
persons employed in the Major Port and registered under the Trade Unions Act, 1926 (16 of 1926). 

(4) Every person nominated or appointed to the office of the Chairperson or Deputy Chairperson or 
Member of the Board, shall, within thirty days of his nomination or appointment, furnish to the Board 
his consent and a declaration that he is not disqualified or ineligible or has conflict of interest to hold 
such office. 

5. Disqualification of Chairperson, Deputy Chairperson and Member from office in certain 
circumstances.—(1) A person shall not be eligible for appointment or to continue as a Chairperson, 
Deputy Chairperson or Member of the Board, if— 

(a) he has been adjudged as an insolvent; 

(b)  he  has  become  physically  or  mentally  incapable  of  acting  as  such  Chairperson,  Deputy 

Chairperson or Member; 

(c) he has been convicted of an offence, involving moral turpitude; 

(d) he holds an office of profit; 

(e) he has made a false declaration under sub-section (4) of section 4; 

(f) he has been removed or dismissed from the service of a Major Port Authority, Government 

or a body corporate owned or controlled by the Central Government or the State Government; or 

(g)  an  order  disqualifying  him  for  appointment  as  a  Chairperson,  Deputy  Chairperson  or 

Member has been passed by a court or tribunal and such order is in force. 

(2)  The  Chairperson,  Deputy  Chairperson  or  any  other  Member  shall  not  be  removed  from  his 
office  except  by  an  order  of  the  Central  Government  on  the  ground  of  his  proved  misbehaviour  or 
incapacity or in contravention of the provisions of section 7 after the Central Government, has, on an 
inquiry, held in accordance with the procedure prescribed in this behalf by the Central Government, 
come to the conclusion that the Member ought on any such ground to be removed. 

(3)  The  Central  Government  may  suspend  the  Chairperson,  Deputy  Chairperson  or  any  other 
Member  in  respect  of  whom  an  inquiry  under  sub-section  (2)  is  being  initiated  or  pending  till  the 
Central Government has passed an order on receipt of the report of the inquiry. 

6.  Term  of office  of  Chairperson,  Deputy  Chairperson  and Members.—(1) The  Chairperson 
and Deputy Chairperson shall hold office for a term not exceeding five years from the date on which 
they enter upon their office or until they attain the age of superannuation, whichever is earlier. 

(2) Subject to the provisions of this Act, a person appointed as a Member of the Board by virtue of 
an office under clause (c) of sub-section (1) of section 3 shall continue to be a Member of the Board 
so long as he continues to hold that office. 

(3)  An  Independent  Member  shall  hold  office  for  a  term  of  three  years  from  the  date  of  his 
appointment  or  up  to  the  age  of  seventy  years,  whichever  is  earlier  and  shall  be  eligible  for  re-
appointment: 

Provided that no Independent Member shall hold office for more than two terms: 

Provided further that an Independent Member shall not, during the said period of three years, be 
appointed to or be associated with any Major Port Authority in any other capacity, either directly or 
indirectly. 

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(4) The Member appointed under clause (f) of sub-section (1) of section 3 shall hold office for a 
term  of  three  years  from  the  date  of  his  appointment  or  until  he  attains  the  age  of  superannuation, 
whichever is earlier and shall be eligible for re-appointment: 

Provided that no such Member shall hold office for more than two terms. 

7. Disclosure of interest.—Before appointing any person as a Chairperson, Deputy Chairperson or 
Member, the Central Government shall satisfy itself that the person does not have any such financial 
or  other  interests  as  is  likely  to  affect  prejudicially  his  functions  as  such  Chairperson,  Deputy 
Chairperson or Member: 

Provided that where the Chairperson, Deputy Chairperson or any Member who is not so concerned 
or  interested  at  the  time  of  occupying  such  office,  he  shall,  if  he  becomes  concerned  or  interested 
afterwards, disclose his concern or interest forthwith when he becomes so concerned or interested or 
at  the  first  meeting  of  the  Board  held  after  he  becomes  so  concerned  or  interested  and  resign 
forthwith. 

8.  Resignation  of  Members.—The  Chairperson,  Deputy  Chairperson  and  Members  may,  by 
notice  in  writing  under  their  hand  addressed  to  the  Central  Government,  resign  their  office  and  on 
such resignation being accepted by that Government, shall be deemed to have vacated their office. 

 9.  Removal  from  office  of  Chairperson,  Deputy  Chairperson  and  Members.—The  Central 

Government shall remove the Chairperson, Deputy Chairperson or any Member, if he— 

(a) becomes subject to any of the disqualifications mentioned in section 5; or 

(b) has, in the opinion of the Central Government, ceased to represent the interest by virtue of 

which he was appointed or elected; or 

(c) refuses to act or becomes incapable of acting; or 

(d)  is,  without  the  previous  permission  of  the  Board  absent  from  six  consecutive  ordinary 

meetings of the Board; or 

(e) is absent from the meetings of the Board for a period exceeding six consecutive months; or 

(f) acts in contravention of the provisions of this Act. 

10. Filling of casual vacancies.—Any vacancy occurring in the office of the Chairperson, Deputy 
Chairperson or any other Member whether by reason of his death, resignation or inability to discharge 
his  functions  owing  to  illness  or  other  incapacity,  shall  be  filled  by  the  Central  Government  by 
making  a  fresh  appointment  within  a  period  of  three  months  from  the  date  on  which  such  vacancy 
occurs and the Member so appointed shall hold office for the remainder of the term of office of the 
person in whose place he is so appointed. 

11. Honorarium payable to Independent Members.—The Independent Members shall be paid 

such honorarium as may be prescribed. 

12. Powers and duties of Chairperson, Deputy Chairperson and Members.—The Chairperson 
and  in  his  absence,  the  Deputy  Chairperson  or  such  other  person  authorised  by  the  Central 
Government shall have powers of general superintendence and directions in the conduct of affairs of 
the  Major  Port  Authority  and  he  shall,  in  addition  to  presiding  over  the  meetings  of  the  Board, 
exercise supervision and control over the acts of all employees of the Major Port Authority in matters 
of executive administration and in matters concerning the accounts and records of such Board. 

13. Meetings of Board.—(1) The Board shall meet at such places and times, and shall follow such 
rules of procedure in regard to the transaction of business at its meetings (including quorum at such 
meetings), as may be specified by the regulations. 

(2)  If  the  Chairperson  for  any  reason,  is  unable  to  attend  a  meeting  of  the  Board,  the  Deputy 
Chairperson  and  in  the  absence  of  such  Deputy  Chairperson,  any  other  Member  chosen  by  the 
Members  present  amongst  themselves  at  the  meeting,  shall  preside  at  the  meeting  or  any  person 
authorised by the Central Government. 

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(3) All questions which come up before any meeting of the Board shall be— 

(a) decided by a majority of votes by the Members present and voting, and in the event of an 
equality of votes, the Chairperson or in his absence, the person presiding shall have a second or 
casting vote; 

(b)  dealt  with  as  expeditiously  as  possible  and  the  Board  shall  dispose  of  the  same  within  a 

period of sixty days from the date of receipt of the application: 

Provided  that  where  any  such  application  could  not  be  disposed  of  within  the  said  period  of 
sixty days, the Board shall record its reasons in writing for not disposing of the application within 
that period. 

 14. Committees of Board.—(1) A Board may, from time to time, from amongst its Members and 
any  other  person,  constitute  committees  for  the  purpose  of  discharging  such  functions  as  may  be 
delegated to such committee or committees by the Board. 

(2) The committee or committees constituted under this section shall meet at such time and at such 
places,  and  shall  observe  such  rules  of  procedure  in  regard  to  the  transaction  of  business  at  its 
meetings (including the quorum) as may be specified by the regulations made under this Act. 

15.  Delegation  of  powers.—The  Board  may,  for  the  purpose  of  exercising  and  discharging  its 

powers, functions and duties, by general or special order in writing, specify— 

(a)  the  powers  and  duties  conferred  or  imposed  upon  the  Board  by  or  under  this  Act,  which 

may also be exercised or performed by the Chairperson; and 

(b) the powers and duties conferred or imposed on the Chairperson by or under this Act, which 
may  also  be  exercised  or performed  by  the  Deputy  Chairperson  or  any  officer  or  officers  of the 
Board and the conditions and restrictions, if any, subject to which the powers and duties may be 
exercised and performed: 

Provided that any powers and duties conferred or imposed upon the Deputy Chairperson or any 
officer  of  the  Board  under  this  clause  shall  be  exercised  and  performed  by  him  subject  to  the 
supervision and control of the Chairperson. 

16.  Restriction  of  re-employment.—(1)  The  Chairperson,  Deputy  Chairperson  and  other 
Members,  on  ceasing  to  hold  office  shall  not,  for  a  period  of  one  year,  accept  any  employment 
(including  as  consultant  or  otherwise)  in  any  organisation  relating  to  Major  Port  whose  matter  has 
been dealt with by such Chairperson, Deputy Chairperson or Member, as the case may be, or has been 
before the Board when he held office as such Chairperson, Deputy Chairperson or Member. 

(2) Nothing in sub-section (1) shall prevent the Chairperson, Deputy Chairperson or a Member, as 
the case may be, to accept any employment in any organisation relating to Major Port controlled or 
maintained by the Central Government or the State Government. 

17.  Vacancies,  etc.,  not  to  invalidate  proceedings  of  Board.—No  act  or  proceedings  of  the 

Board shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of the Board; or 

(b) any defect in the appointment of a person acting as a Member of such Board; or 

(c) any irregularity in the procedure of the Board not affecting the merits of the case. 

18. Power to make appointments.—(1) The power of appointing any person to any post, whether 

temporary or permanent shall— 

(a) in the case of a post— 

(i) the incumbent of which is to be regarded as the Head of a Department; or 

(ii) to which such incumbent is to be appointed; or 

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(iii) the maximum of the pay scale of which (exclusive or allowances) exceeds such amount 
as the Central Government may, by notification in the Official Gazette, fix, be exercisable by 
the Central Government after consultation with the Chairperson; 

(b) in the case of any other post, be exercisable by the Chairperson or by such authority, as may 

be specified by the regulations: 

Provided that no person shall be appointed as a pilot at any port, who is not for the time being 

authorised  by  the  Central  Government  under  the  provisions  of  the  Indian  Ports  Act,  1908                
(15 of 1908) to pilot vessels at that or any other port. 

(2) The Central Government may, by order, specify any post the incumbent of which shall, for the 

purposes of this Act, be regarded as the Head of a Department. 

19. Authentication of orders and other instruments of Board.—All orders, decisions and other 

instruments issued by the Board shall be authenticated by the signature of the Chairperson. 

CHAPTER III 

MANAGEMENT AND ADMINISTRATION 

A. STAFF OF MAJOR PORT AUTHORITY 

20.  List  of  staff  of  Board.—The  Board  shall  after  every  five  years  prepare  and  submit  to  the 
Central Government a list of the employees of the Board of Major Port Authority indicating therein 
the designations and grades of employees, and the salaries, fees and allowances which are proposed to 
be paid to them. 

B. PROPERTY AND CONTRACTS 

21. Board to be deemed as successor of Board of Trustees of Major Port.—On and from the 

date of constitution of the Board— 

(a)  the  Board  of  the  Major  Port  Authority  shall  be  the  successor  of  the  Board  of  Trustees 

constituted under the Major Port Trusts Act, 1963 (38 of 1963); 

(b) all the assets and liabilities of the Board of Trustees shall stand transferred to, and vested in, 

the Board. 

Explanation.—For  the  purposes  of  clause  (b),  the  assets  of  the  Board  of  Trustees  shall  be 
deemed to include all rights and powers, all properties, whether movable or immovable, including, 
in  particular,  cash  balances,  deposits  and  all  other interests  and  rights  in,  or  arising  out  of,  such 
properties as may be in the possession of the Board of Trustees and all books of account and other 
documents relating to the same; and liabilities shall be deemed to include all debts, liabilities and 
obligations of whatever kind; 

(c)  without  prejudice  to  the  provisions  of  clause  (a),  all  debts,  obligations  and  liabilities 
incurred, all contracts entered into and all matters and things engaged to be done by, with or for the 
Board of Trustees immediately before that date, for or in connection with the purpose of the said 
Board of Trustees, shall be deemed to have been incurred, entered into or engaged to be done by, 
with or for, the Board; 

(d)  all  sums  of  monies  due  to  the  Board  of  Trustees  immediately  before  that  date  shall  be 

deemed to be due to the Board; 

(e)  all  suits  and  other  legal  proceedings  instituted  or  which  could  have  been  instituted  by  or 
against the Board of Trustees immediately before that date may be continued or may be instituted 
by or against the Board; 

(f) every employee serving under the Board of Trustees of the Major Port immediately before 
such date shall become an employee of the Board, shall hold his office or service therein by the 
same tenure and upon the same terms and conditions of service as he would have held if the Board 
had not been established and shall continue to do so unless and until his employment in the Board 

10 

 
is terminated or until his tenure, remuneration or terms and conditions of service are duly altered 
by the Board: 

Provided  that  the  tenure,  remuneration  and  terms  and  conditions  of  service  of  any  such 
employee  shall  not  be  altered  to  his  disadvantage  without  the  previous  sanction  of  the  Central 
Government; and 

(g)  every  person  who  was receiving  any  retirement benefit  from  the  Board  of Trustees  under 
the  Major  Port  Trusts  Act,  1963  (38  of  1963)  immediately  before  such  date,  shall  continue  to 
receive the same benefit from the Board: 

Provided  that  the  retirement  benefit  of  such  person  shall  not  be  altered  by  the  Board  to  his 

disadvantage without the previous sanction of the Central Government. 

22. Usage of port assets by Board.—(1) The Board of each Major Port shall be entitled to use its 
property, assets and funds in such manner and for such purposes as it may deem fit for the benefit of 
that Major Port. 

(2) All port assets shall be used and developed as per the regulations  made by the Board in that 

behalf and to the exclusion of any municipal, local or Government regulation: 

Provided  that  the  manner  of  any  contract  or  arrangement  by  the  Board  for  sale  of  land  or 
immovable property, or period and manner for lease of land or  immovable property for port related 
use and non-port related use, shall be in such manner as may be prescribed: 

Provided  further  that  the  tenure  for  lease  of  land  or  immovable  property  for  Public  Private 
Partnership projects by the Board shall be subject to the policy notified by the Central Government in 
respect of such Public Private Partnership projects. 

(3)  The  Board  of  each  Major  Port  may  erect,  construct  or  build  such  civil  structures  for  port 
development or improving commerce and trade in national interest for which no regulatory license or 
approval from the State authorities shall be required, unless so mandated by the Central Government. 

(4) For those port assets that relate to landing places and limits of customs area and which require 
fresh  approval  from  the  Commissioner  of  Customs  under  the  Customs  Act,  1962  (52  of  1962),  the 
Board  of  each  Major  Port  Authority  shall,  by  notification,  declare  the  availability  and  readiness  of 
such port assets after the said approval has been received from the Commissioner of Customs. 

23.  Procedure  when  immovable  property  cannot  be  acquired  by  agreement.—Where  any 
immovable property is required for the purposes of the Board, the Central Government, or as the case 
may be, the State Government may, at the request of the Board, procure the acquisition thereof under 
the  provisions  of  the  Right  to  Fair  Compensation  and  Transparency  in  Rehabilitation  and 
Resettlement Act, 2013 (30 of 2013) or any other law for the time being in force, and on payment by 
the Board, the compensation awarded under that Act and of the charges incurred by the Government 
in connection with the proceedings, the land shall vest in the Board. 

24. Contracts by Board.—(1) The Board of each Major Port shall be competent to enter into and 

perform any contract necessary for discharging of its functions under this Act. 

(2) Every contract shall, on behalf of the Board of each Major Port, be made by the Chairperson or 
by any such officer of the Board as the Chairperson may by general or special order, authorise in this 
behalf and shall be sealed with the common seal of the Board 

(3) The form and manner in which any contract shall be made under this Act, shall be such as may 

be specified by regulations. 

25. Master Plan.—Subject to the rules made under this Act, the Board of each Major Port shall be 
entitled to create specific master plan in respect of any development or infrastructure established or 
proposed  to  be  established  within  the  port  limits  and  the  land  appurtenant thereto  and  such  master 
plan shall be independent of any local or State Government regulations of any authority whatsoever: 

11 

 
Provided that in case of any conflict between the master plan created by the Board and any local 

authority, the master plan created by the Board shall prevail. 

26.  Powers  of  Board  in  respect  of  planning  and  development.—(1)  For  the  purposes  of 
planning and development of the Major Port, the Board in relation to that Major Port shall have the 
power  to  make  regulations,  not  inconsistent  with  the  Customs  Act,  1962  (52  of  1962)  or  any  rules 
made thereunder, to— 

(a) undertake, execute and perform such works and provide such services at or within the port 
limits  and  Major  Port  approaches  on  such  terms  and  conditions  as  it  may  deem  necessary  or 
expedient; 

(b) declare  availability of the port assets at the Major Port or Major Port approaches for port 
related  activities  and  services  subject  to  such  limits,  conditions  and  restrictions  as  it  may  deem 
necessary or expedient; 

(c)  develop  and  provide  infrastructure  facilities  including  setting  up  of  new  ports,  jetties, 
navigational channels, dry ports and such other infrastructure in furtherance of the interest of the 
Major Port; 

(d) take charge of the goods from the concerned owner for the purpose of performing any port 

related services; 

(e) order, in case of emergency or for any other reason, the master or owner or agent of any sea-
going vessel, not to bring any vessel alongside of, or to remove such vessel from, any dock, berth, 
wharf, quay, stage, jetty or pier belonging to or under the control of the Board; 

(f) permit construction and development by itself or through any person, to make, erect, fix or 
remove within the port limits or Major Port approaches any wharf, dock, quay, stage, jetty, pier, 
building  or  structure,  erection  or  mooring  or  undertake  any  reclamation  of  foreshore  within  the 
said limits and buildings and amenities required for the residence and welfare of the employees of 
the  Board,  subject  to  such  limits,  conditions  and  restrictions  as  it  may  deem  necessary  or 
expedient; 

(g) provide exemption or remission from payment of any rate or charge leviable on any goods 

or vessels or class of goods or vessels under this Act; 

(h)  provide  any  other  services  or  amenities  in  respect  of  vessels,  passengers,  goods  or 

employees; 

(i)  undertake,  execute  and  perform  such  works,  activities  and  studies  to  promote  maritime 
education,  training  skill  development  of  coastal  communities,  seafarers  welfare  and  Major  Port 
related development; and 

(j)  make  or  construct  or  erect  within  the  port  limits  such  structures,  buildings,  drains,  roads, 
fences,  tube-wells,  in-take  wells,  storage  facilities,  warehouses,  pipelines,  telephone  lines, 
communication  towers,  electricity  supply  or  transmission  equipment  and  such  other  works  and 
conveniences as the Board of each Major Port thinks proper. 

(2)  The  power  of  the  Board  to  make  regulations  under  sub-section  (1)  shall  be  independent  of 

powers of any local authority to make regulations in respect of Major Port: 

Provided  that  in  case  of  conflict  between  the  regulations  made  by  the  local  authority  and  those 

made by Board, the regulations made by Board shall prevail. 

D. IMPOSITION OF RATES 

27.  Scale  of  rates  for  assets  and  services  available  at  Major  Port.—(1)  The  Board  of  each 
Major  Port  Authority  or  the  committee  or  committees  constituted  in  this  behalf  by  the  Board  in 
accordance with section 14, may,— 

(a) frame scale of rates at which, and a statement of conditions under which, any services shall 

be performed or made available; 

12 

 
(b) frame scale of rates at which, and a statement of conditions under which, the access to and 

usage of the port assets may be allowed by the Board; 

(c) frame consolidated scale of rates for any combination of services specified in clause (a) or 
for any combination of such service or services with any user or permission to use or access to any 
port assets as specified in clause (b); 

(d) pass an order for refund of any amount overcharged by the Board in relation to the services 

provided to any person; 

(e)  pass  an  order  for  recovery  of  any  rate  or  charge  which  is  short-levied  or  erroneously 

refunded by the Board to any person under this Act; and 

(f) frame different scales, fees, rates and conditions for different classes of goods and vessels 

under this section: 

Provided that the fixation and implementation of such scales, fees, rates and conditions shall be 

in consonance with the norms as may be prescribed and shall.— 

(i) not be with retrospective effect; 

(ii) not be in derogation with the rules made by or directives of the Central Government in 

this behalf; 

(iii) not be inconsistent with the provisions of the Competition Act, 2002 (12 of 2003); and 

(iv) not be inconsistent with the provisions of any other law for the time being in force: 

Provided that in case of Public Private Partnership projects after the commencement of this Act, 
concessionaire shall fix the tariff based on market conditions and on such other conditions as may be 
notified: 

Provided further that the revenue share and other conditions would be as per the provisions of the 
specific concession agreement between the Board and the Public Private Partnership concessionaire 
appointed under the Public Private Partnership project. 

(2) Notwithstanding anything contained in clause (b) of sub-section (1), the Board may, by auction 
or  by  inviting  tenders,  lease  any  port  asset  belonging  to  or  in its  possession  or occupation  at  a rate 
higher than that provided under clause (b) of sub-section (1). 

28. Board's lien for rates.—(1) The Board for the amount of all rates leviable under this Act in 
respect of any goods and for the rent due to such Board for any buildings, plinths stacking areas, or 
other premises on or in which any goods may have been placed, it shall have a lien on such goods, 
and may seize and detain the same until such rates and rents are fully paid. 

(2) The right of lien referred to in sub-section (1) shall have priority over all other liens and claims, 
except for general average and for ship owner's lien upon the said goods for freight and other charges 
where such lien exists and has been preserved in the manner provided in sub-section (1) of section 29, 
and for monies payable to the Central Government under any law for the time being in force relating 
to customs, other than by way of penalty or fine. 

(3) The right of lien referred to in sub-section (1) shall also vest with any concessionaire appointed 
by  the  Board  with  whom  a  concession  contract  under  a  Public  Private  Partnership  project  for 
operating any berth or terminal within the port limits has been executed by the said Board. 

29. Ship-owner's lien for freight and other charges.—(1) If the master or owner of any vessel or 
his agent, at or before the time of landing from such vessel or any goods at any port asset belonging to 
or in the occupation of the Board of the Major Port, gives to such Board a notice in writing that such 
goods  are  to  remain  subject  to  a  lien  for  freight  or  other  charges  payable  to  the  ship-owner,  to 
an amount to be mentioned in such notice, such goods shall continue to be liable to such lien to such 
amount. 

(2) The  goods shall  be  retained in the  custody  of the  Board  at the  Board's  designated storage  or 
godown or warehouse stations at the risk and expense of the owners of the goods until such lien is 

13 

 
discharged  and  godown  or  storage  rent shall  be  payable  by  the  party  entitled to  such  goods  for the 
time during which they may be so retained. 

(3) Upon the production, before any officer appointed by the Board in that behalf, of a document 
purporting  to  be  a  receipt  for,  or  release  from,  the  amount  of  such  lien,  executed  by  the  person  by 
whom  or  on  whose  behalf  such  notice  has  been  given,  the  Board  may  permit  such  goods  to  be 
removed  without  regard  to  such  lien,  provided  that  the  Board  shall  have  used  reasonable  care  in 
respect to the authenticity of such document. 

30. Sale of goods and application of sale proceeds in certain cases.—(1) The Board may, after 
expiry of such time and in such manner as stipulated in section 48 of the Customs Act, 1962 (52 of 
1962), sell any goods that have passed or placed into the custody of the Board upon landing thereof— 

(a) if any rates payable to the Board in respect of such goods have not been paid; or 

(b) if any rent payable to the Board in respect of any place on or in which such goods have been 

stored has not been paid; or 

(c)  if  any  lien  of  any  ship-owner  or  Container  Freight  Station  or  Inland  Container  Depot  for 
freight or other charges of which notice has been given has not been discharged and if the person 
claiming such lien for freight or other charge has made to the Board an application for such sale; or 

(d) if such goods are not removed by the owner or the person entitled thereto from the premises 

of the Board: 

Provided  that  the  Board  may  authorise  any  concessionaire  appointed  by  it  under  the  Public 
Private  Partnership  project  for  operating  any  berth  or  terminal  within the  port limits  to  sell such 
goods: 

Provided  further  that  any  such  authorisation  by  the  Board  shall  be  subject  to  the  terms  and 

conditions of the concession agreement entered into by the Board with such concessionaire. 

(2) The proceeds of sale of goods under sub-section (1) shall be applied in the manner as provided 

in section 150 of the Customs Act, 1962 (52 of 1962). 

(3) Notwithstanding anything contained in this section, controlled goods may be sold at such time 

and in such manner as the Central Government may direct. 

Explanation.-- For  the  purposes  of  this  section,  the  expression  “controlled  goods”  means  the 

goods, the price or disposal of which is regulated under any law for the time being in force. 

31.  Recovery  of  rates  and  charges  by  distraint  of  vessel.—(1)  If  the  master  of  any  vessel  in 
respect of which any rates or penalties are payable under this Act, or under any regulations or orders 
made  in  pursuance  thereof,  refuses  or  neglects  to  pay  the  same  or  any  part  thereof  on  demand,  the 
Board on its own or on request of the concessionaire appointed by the Board under the Public Private 
Partnership project, may distrain or arrest such vessel and the tackle, apparel and furniture belonging 
thereto,  or  any  part  thereof,  and  detain  the  same  until  the  amount  so  due  to  the  Board  or  such 
concessionaire,  together  with  such  further  amount  as  may  accrue  for  any  period  during  which  the 
vessel is under distraint or arrest, is paid. 

(2) In case any part of the said rates or penalties, or of the cost of the distress or arrest, or of the 
keeping of the same, remains unpaid for the space of fifteen days next after any such distress or arrest 
has been so made, the Board on its own or on request of such concessionaire may cause the vessel or 
other thing so distrained or arrested to be sold, and, with the proceeds of such sale, shall satisfy such 
rates  or  penalties  and  costs,  including  the  costs  of  sale  remaining  unpaid,  rendering  the  surplus  (if 
any) to the master of such vessel on demand. 

32.  Application  to  Adjudicatory  Board.—Any  person  aggrieved  by  any  action  of  the  Board 
while  exercising  its  powers  under  sections  22  to  31  (except  section  29),  may  approach  the 
Adjudicatory  Board  constituted  under  section  54  by  filing  an  application  before  it  in  such  form, 
manner and on payment of such fee, as may be prescribed. 

14 

 
33. Power to raise loans and issue securities.—(1) The Board may for the purposes of its capital 

expenditure and working capital requirements raise loans in any currency or currencies from any— 

(a) scheduled bank or financial institution located within India; or 

(b) financial institution in any country outside India in compliance with the laws for the time 

being in force: 

Provided  that  no  loan  or  loans  exceeding  a  sum  equivalent  to  fifty  per  cent.  of  the  capital 
reserves  of  the  Board  shall  be  raised  by  the  Board  without  the  previous  sanction  of  the  Central 
Government. 

(2) The loans may be raised by Board in the open market within India and in any country outside 
India on port securities including but not limited to debentures, bonds and stock certificates issued by 
the Board or may be obtained from the Central Government or a State Government: 

Provided that no loans shall be raised from and no securities shall be issued to any person resident 
outside India without complying with the Foreign Exchange Management Act, 1999 (42 of 1999), the 
circulars  and  guidelines  issued  by  the  Reserve  Bank  of  India,  the  Foreign  Direct  Investment  Policy 
issued by the Central Government and any other law for the time being in force. 

(3) The holder of any port security in any form may obtain in exchange thereof, upon such terms as 
the Board may from time to time determine, a port security in such form as may be specified by the 
regulations made by the Board. 

(4)  The  right  to  sue  in  respect  of  monies  secured  by  port  securities  shall  be  exercisable  by  the 

holders thereof subject to the provisions of the Limitation Act, 1963 (36 of 1963). 

(5) Nothing contained in this Act shall be deemed to affect the power of the Boards of Major Port 

Authorities to raise loans under the Local Authorities Loans Act, 1914 (9 of 1914). 

(6)  Notwithstanding  anything  contained  in this  Act, the  Board  may  borrow  monies  by  means  of 
temporary overdraft or otherwise by pledging the securities held by the Board in its reserve funds or 
on the security of the fixed deposits of the Board in its banks: 

Provided  that  such  temporary  overdrafts  or  other  loans  shall  not  be  taken,  without  previous 
sanction of the Central Government, if at any time in any year the amount of such overdrafts or other 
loans exceeds a sum equivalent to fifty per cent. of the capital reserves of the Board: 

Provided  further  that  all  monies  so  borrowed  by  temporary  overdrafts  or  otherwise  shall  be 

expended for the purposes of this Act. 

34.  Endorsements  to  be  made  on  security  itself.—Notwithstanding  anything  contained  in      

 section 15 of the Negotiable Instruments Act, 1881 (26 of 1881), no endorsement of a port security, 
which  is  transferable  by  endorsement,  shall  be  valid  unless  made  by  the  signature  of  the  holder 
inscribed on the back of the security itself. 

35. Endorser of security not liable for amount thereof.—Notwithstanding anything contained in 
the Negotiable Instruments Act, 1881 (26 of 1881), a person shall not by reason only of his having 
endorsed  any  port  security  be  liable  to  pay  any  monies  due,  either  as  principal  or  as  interest 
thereunder. 

36. Recognition as holder of port securities in certain cases and legal effect thereof.—(1) The 
person to whom a duplicate or new security has been issued under the regulations made by the Board 
shall  be  deemed  for  the  purposes  of  sub-section  (2)  to  have  been  recognised  by  the  Board  as  the 
holder  of  the  security;  and  a  duplicate  security  or  a  new  security  so  issued  to  any  person  shall  be 
deemed to constitute a new contract between the Board and such person and all persons deriving title 
thereafter through him. 

(2)  No  recognition  by  the  Board  of  a  person  as  the  holder  of  a  port  security  shall  be  called  in 
question  by  any  court  so  far  as  such  recognition  affects  the  relations  of  the  Board  with  the  person 
recognised  by  it  as  the  holder  of  a  port  security  or  with  any  person  claiming  an  interest  in  such 
security; and any such recognition by the Board of any person shall operate to confer on that person a 

15 

 
title to the security or securities subject only to a personal liability to the rightful owner of the security 
for money had and received on his account. 

37. Discharge in certain cases.—Notwithstanding anything contained in the Limitation Act, 1963 

(36 of 1963).— 

(a)  on  payment  of  the  amount  due  on  a  port  security  on  or  after  the  date  on  which  payment 

becomes due; or 

(b) when a duplicate security has been issued under the regulations made by the Board under 

sub-section (1) of section 36; or 

(c) when a new security has been issued upon conversion, consolidation or sub-division under 
the regulations made by the Board, the Board shall be discharged from all its liability in respect of 
the security so paid or in place of which a duplicate or new security has been issued— 

(i) in the case of payment after the lapse of six years from the date on which payment was 

due; 

(ii) in the case of a duplicate security after the lapse of six years from the date of the issue 
thereof or from the date of the last payment of interest on the original security, whichever date 
is later; 

(iii) in case of a new security issued upon conversion, consolidation or sub-division after the 

lapse of six years from the date of the issue thereof. 

38. Security for loans taken out by Boards of Major Port Authorities.—If a loan is raised by 
the Board of any Major Port and a security other than the port security is required to be furnished  to 
secure such loan, the Board of that Major Port may secure such loan against— 

(a) the port assets other than— 

(i) any sum set apart by the Board— 

(A) as the sinking fund for the purpose of paying off any loan; or 

(B) for the payment of pension to its employees; or 

(ii) the provident or pension fund established by the Board; and 

(b) income of the Board from the port assets and services. 

39. Power of Board to repay loans to Government before due date.—The Board may apply any 
sums, out of monies which may come into its hands under the provisions of this Act and which can be 
so applied without prejudicing the security of the other holders of port securities, in repaying to the 
Government  any  sum  which  may  remain  due  to  it  in  respect  of  the  principal  account  of  any  loan 
although the time fixed for the repayment of the same may not have arrived. 

40.  Establishment  and  application  of  sinking  fund.—(1)  In  respect  of  loans  raised  by  the 
respective  Board  of  the  Major  Port  Authorities  under  this  Act,  which  are  not  repayable  before  the 
expiration  of  one  year  from  the  date  of  such  loans,  such  Boards  shall  set  apart  out  of  their  income 
enough sinking fund or funds to service or liquidate such loans for a period of at least one year. 

(2) Before the commencement of this Act, if any sinking fund had been established by the Board 
of Trustees constituted under the Major Port Trusts Act, 1963 (38 of 1963) in respect of a loan raised 
by  it  for  which  loan,  the Board  is  liable  under  this Act  and  the  sinking  fund  so  established  by  that 
Board of Trusts shall be deemed to have been established by the Board under this Act. 

(3) The  sums  so  set  apart by  the  Board  under  sub-section  (1)  and  the  sums  forming  part  of  any 

sinking fund referred to in sub-section (2) shall be applied in such manner as may be prescribed. 

(4) The Board may apply the whole or any part of the sums accumulated in any sinking fund in or 
towards  the  discharge  of  the  monies  borrowed  for  the  repayment  of  which  the  fund  has  been 
established: 

16 

 
Provided that the Board pays into the fund in each year, and accumulates until the whole of the 
monies borrowed are discharged, a sum equivalent to the interest which would have been produced by 
the sinking fund, or the part of the sinking fund so applied. 

41. Existing loans and securities to continue.— Notwithstanding anything contained in this Act, 
all loans raised or borrowed and all securities issued or pledged in relation to a Major Port prior to the 
commencement  of  this  Act  shall  continue  to  be  governed  in  accordance  with  the  provisions  of  the 
Major Port Trusts Act, 1963 (38 of 1963). 

B. GENERAL ACCOUNT OF MAJOR PORT AUTHORITIES 

42.  General  accounts  of  Board.—All  monies  received  by  or  on  behalf  of  the  Board  under  the 
provisions of this Act shall be credited to such general account or accounts of the Board which the 
Board may from time to time generally open with any Nationalised Bank or any Scheduled Bank as 
per the guidelines of the Ministry of Finance, Government of India. 

43. Application of money in general accounts.—(1) The monies credited to the general account 
or  accounts  under  section  42,  shall  be  applied  by  the  Board  in  payment  of  the  following  charges, 
namely:— 

(a)  the  salaries,  fees,  allowances,  pensions,  gratuities,  compassionate  allowances  or  other 

monies due to— 

(i)  the  Members  of  the  Board  except  Members  appointed  under  clauses  (d),  (e)  and  (f)  of 

sub-section (1) of section 3; 

(ii) the serving and retired employees of the Board; and 

(iii) the surviving relatives, if any, of such employees; 

(b) the cost and expenses, if any, incurred by the Board in the conduct and administration of 

any provident or welfare fund or loan or special fund established by the Board; 

(c)  the  maintenance,  development,  security  and  protection  of  the  Board  and  the  docks, 

warehouses and other port assets; 

(d) the cost of repairs and maintenance of the property belonging to or vested in the Board and 

all charges upon the same and all working expenses; 

(e) the costs, expenses, sums, payments and contributions to be made or incurred by the Board 

for the purposes provided under sections 25 and 26; and 

(f) any other charge or expenditure for which the Board may be legally liable. 

(2)  All  monies  standing  to  the  credit  of  the  Board  which  cannot  immediately  be  applied  in  the 
manner or for the purposes specified in sub-section (1) may be used for such lawful purposes as the 
Board may from time to time decide. 

(3)  Notwithstanding  anything  contained  in  section  42  and  sub-sections  (1)  and  (2),  monies 
received by or on behalf of the Board from non-port related use except those falling under section 70 
shall be credited to a designated account and shall be applied by the Board for capital investment or 
for such purposes as may be prescribed. 

C. ACCOUNTS AND AUDIT 

44.  Accounts  and  audit.—(1)  The  Board  shall  prepare  a  budget,  maintain  proper  accounts  and 
other relevant records and prepare an annual statement of accounts including the balance-sheet in such 
form  as  may  be  prescribed  by  the  Central  Government  in  consultation  with  the  Comptroller  and 
Auditor-General of India. 

(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India or 
such other person as may be appointed by him in this behalf and any amount payable to him by the 
Board in respect of such audit shall be debitable to the general account of the Board. 

17 

 
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection 
with the audit of the accounts of the Board under this Act shall have the same rights, privileges and 
authority in connection with such audit as the Comptroller and Auditor-General of India generally has 
in connection with the audit of Government accounts and, in particular shall have the right to demand 
the  production  of  books,  accounts,  connected  vouchers  and  other  documents  and  papers,  and  to 
inspect any of the offices of the Authority. 

(4) The accounts of the Board, as certified by the Comptroller and Auditor-General of India or any 
other person appointed by him in this behalf, together with the audit report thereon shall be forwarded 
annually to the Central Government by the Board and the Central Government shall cause the same to 
be laid, as soon as may be after it is received, before each House of Parliament. 

CHAPTER V 

SUPERVISION OF CENTRAL GOVERNMENT 

45 . Administration report.—As soon as may be after the first day of April in every year and not 
later than such date as may be fixed by the Central Government, the Board shall submit to the Central 
Government a detailed report of the administration of the Board during the preceding year ending on 
the thirty-first day of March, in such form as the Central Government may direct. 

46. Power of Central Government to order survey or examination of works of Board.—The 
Central Government may, at any time, order a local survey or examination of any works of the Board, 
or the intended site thereof and the cost of such survey and examination shall be borne and paid by the 
Board from and out of the monies credited to its general account. 

47. Power of Central Government to restore or complete works at cost of Board.—(1) If, at 
any  time,  the  Central  Government  is  of  the  opinion  that  the  inaction  by  any  Board  in  repairing, 
completing, restoring, carrying out or providing any work or appliance mentioned in sub-section (2) 
has  led  to  a  grave  emergency,  the  Central  Government  may  cause  such  work  to  be  restored  or 
completed or carried out, or such repairs to be carried out or such appliance to be provided and the 
cost  of  any  such  restoration,  completion,  construction,  repair  or  provision  shall  be  paid  by  the 
concerned Board from and out of the monies credited to its general account. 

(2) The following actions or omissions may be considered to have led to grave emergency under 

sub-section (1), if any Board— 

(a) allows any work or appliance constructed or provided by, or vested in, the Board to fall into 

disrepair; or 

(b)  does  not,  within  a  reasonable  time,  complete  any  work  commenced  by  the  Board  or 

included in any estimate sanctioned by the Central Government; or 

(c) does not, after due notice in writing, proceed to carry out effectually any work or repair or 
provide  any  appliance  which  is  necessary  in  the  opinion  of  the  Central  Government  for  the 
purposes of this Act. 

48. Power of Central Government to take over management of Board.—(1) If, at any time, the 

Central Government is of the opinion-- 

(a) any Board is unable to perform the duties imposed on it by or under the provisions of this 

Act or of any other law for the time being in force; or 

(b) that any Board has persistently made defaults in performance of the duties imposed upon it 
by or under the provisions of this Act or of any other law for the time being in force and as a result 
of such default, the financial position or the administration of that Board has greatly deteriorated, 

the  Central  Government  may,  by  notification,  take  over  the  management  of  that  Board  for  such 
period, not exceeding twelve months at a time, as may be specified in the notification: 

Provided that before issuing a notification under this sub-section for the reasons mentioned in 
clause (b), the Central Government shall give a reasonable time of not less than three months to the 

18 

 
Board  to  show-cause  why  its  management  should  not  be  taken  over  and  shall  consider  the 
explanations and objections, if any, of that Board. 

(2) Upon the publication of a notification under sub-section (1) for taking over the management of 

the Board, — 

(a) all  the Members  of the  Board shall,  as from  the date  of taking  over,  stand removed  from 

their respective office or position in the Board; 

(b) all the powers and duties which may, by or under the provisions of this Act or of any other 
law for the time being in force, to be exercised or performed by or on behalf of the Board, shall be 
exercised and performed by such person or persons as the Central Government may direct in this 
behalf until the Board is reconstituted under clause (b) of sub-section (3); 

(c)  all  property  vested  in  the  Board  shall,  until the  Board is reconstituted  under  clause (b)  of 

sub-section (3), vest in the Central Government. 

(3)  On  the  expiration  of  the  period  of  taking  over  specified  in  the  notification  issued  under    

sub-section  (1)  or  at  any  time  prior  to  such  expiration,  the  Central  Government  may,  by 
notification,.— 

(a) extend the period of taking over the management of the Board for such further term, not 

exceeding twelve months, as it may consider necessary; or 

(b) re-constitute the Board by making fresh appointment to all posts of the Board on such 
terms and conditions as the Central Government may consider necessary, and in such case, any 
person  who  stand  removed  from  their  offices  under  clause  (a)  of  sub-section  (2)  shall  be 
deemed disqualified for appointment. 

49.  Laying  of  report.—For  any  action  or  actions  taken  under  sections  47  and  48  and  any 
notification issued under section 48, the Central Government shall prepare and cause a full report of 
any  such  action  or  actions  and  notification  and  the  circumstances  leading  to  such  action  to  be  laid 
before each House of Parliament. 

50.  Power  of  Central  Government 

to  exempt 

from  obligation 

to  use  port                      

assets.—Notwithstanding anything contained in this Act, the Central Government may, in the interest 
of security of the nation or on account of a grave emergency, by general or special order, from time to 
time,  permit  certain  specified  vessels  or  classes  of  vessels  to  discharge  or  ship  goods  or  certain 
specified  goods  or  classes  of  goods,  at  such  place  in  a  Major  Port  or  within  the  Major  Port 
approaches, in such manner, during such period and subject to such payments to the concerned Board 
in relation to such Major Port or such Major Port approaches and on such conditions as the Central 
Government may think fit. 

51.  Board  not  to  sell,  alienate  or  divest  its  assets,  properties,  rights,  powers  and 
authorisations  without  sanction  of  Central  Government.—The  Board  shall  not  sell,  alienate  or 
divest its assets, properties, rights, powers and authorisations vested in it under this Act without the 
prior sanction of the Central Government. 

52. Remedies of Government in respect of loans made to Board.—(1) The Central Government 
or a State Government, from the date of commencement of this Act, shall have, in respect of loans 
made by it to the Board or of loans made to any other authority for the repayment of which the Board 
is legally liable on such commencement, the same remedies and priority as applicable under the Major 
Port Trusts Act, 1963 (38 of 1963) as if this Act had not been passed. 

(2)  For  prospective  loans  by  the  Central  or  State  Governments  or  of  loans  made  by  any  other 
authority, the remedies would be the same as available to the holders of port securities issued by the 
Board  unless  priority  or  greater  rights  are  granted  by  the  Board  in  respect  of  such  loans  within the 
respective loan agreements. 

53. Power of Central Government to issue directions.—(1) Without prejudice to the foregoing 
provisions of this Chapter, the Board shall in  discharge of its functions under this Act, be bound by 

19 

 
such  directions  on  question  of  policy  as  the  Central  Government  may  give  in  writing  from  time  to 
time: 

Provided that the Board shall be given an opportunity to express its views before any direction is 

given under this sub-section. 

(2) The decision of the Central Government on whether a question is one of the policy or not shall 

be final and binding on the Board. 

CHAPTER VI 

CONSTITUTION OF ADJUDICATORY BOARD 

54.  Constitution  of  Adjudicatory  Board.—(1)  The  Central  Government  shall,  by  notification, 
constitute,  with  effect  from  such  date  as  may  be  specified  therein,  a  Board  to  be  known  as  the 
Adjudicatory Board to exercise the jurisdiction, powers and authority conferred on such Adjudicatory 
Board by or under this Act: 

Provided that until the constitution of the Adjudicatory Board, the Tariff Authority for Major Ports 
constituted  under section  47A of  the  Major  Port  Trusts  Act,  1963  (38  of  1963)  shall  discharge  the 
functions  of  the  Adjudicatory  Board  under  this  Act  and  shall  cease  to  exist  immediately  after  the 
constitution of the Adjudicatory Board under this Act: 

Provided further that on and from the date of constitution of the Adjudicatory Board— 

(a) all the assets and liabilities of the Tariff Authority for Major Ports shall stand transferred to, 

and vested in, the Adjudicatory Board. 

Explanation.— For  the  purposes  of  this  clause,  the  assets  of  the  Tariff  Authority  for  Major 
Ports  shall  be  deemed  to  include  all  rights  and  powers,  all  properties,  whether  movable  or 
immovable, including, in particular, cash balances, deposits and all other interests and rights in, or 
arising out of, such properties as may be in the possession of the Tariff Authority for Major Ports, 
and all books of account and other documents relating to the same, and liabilities, shall be deemed 
to include all debts, liabilities and obligations of whatever kind; 

(b)  without  prejudice  to  the  provisions  of  clause  (a),  all  debts,  obligations  and  liabilities 
incurred, all contracts entered into, and all matters and things engaged to be done by, with or for 
the Tariff Authority for Major Ports before that date, for or in connection with the purpose of the 
said  Tariff  Authority  for  Major  Ports,  shall  be  deemed  to  have  been  incurred,  entered  into,  or 
engaged to be done by, with or for, the Adjudicatory Board; 

(c) all sums of money due to the Tariff Authority for Major Ports immediately before that date 

shall be deemed to be due to the Adjudicatory Board; 

(d)  all  suits  and  other  legal  proceedings  instituted  or  which  might  have  been  instituted  by  or 
against the Tariff Authority for Major Ports immediately before that date may be continued or may 
be instituted by or against the Adjudicatory Board; 

(e) every employee serving under the Tariff Authority for Major Ports immediately before such 
date  shall  become  an  employee  of  the  Adjudicatory  Board  and  shall  hold  his  office  or  service 
therein by the same tenure without any change or derogation of the terms and conditions of service 
held with the Tariff Authority for Major Ports: 

Provided  that  the  tenure,  remuneration  and  terms  and  conditions  of  service  of  any  such 
employee  shall  not  be  altered  to  their  disadvantage  without  the  previous  sanction  of  the  Central 
Government; 

(f) every person who was receiving any retirement benefits from the Tariff Authority for Major 
Ports  immediately  before  such  date,  shall  continue  to  receive  the  same  benefit  from  the 
Adjudicatory Board: 

20 

 
 
Provided  that  the  retirement  benefits  of  such  person  shall  not  be  altered  by  the  Adjudicatory 

Board to his disadvantage without the previous sanction of the Central Government. 

(2) The head office of the Adjudicatory Board shall be at such a place as may be notified by the 

Central Government: 

Provided  that the  Adjudicatory  Board  may  hold  its  sittings  at  such  other  places as  the  Presiding 
Officer may decide from time to time, having taken into consideration the convenience to decide the 
disputes referred to it. 

55. Composition of Adjudicatory Board.—The Adjudicatory Board shall consist of a Presiding 

Officer and two other members, as may be appointed by the Central Government. 

56.  Qualifications,  terms  and  conditions  of  service  of  Presiding  Officer  and  members  of 
Adjudicatory Board.—(1) A person shall not be qualified for appointment as the  Presiding Officer 
of the Adjudicatory Board unless he is—retired Judge of the Supreme Court of India or a retired Chief 
Justice of a High Court. 

(2) A person shall not be qualified for appointment as a member of the Adjudicatory Board unless 

he is— 

(a) a retired Chief Secretary of a State Government or equivalent; or 

(b) a retired Secretary of the Government of India or equivalent, and has an experience of not 
less than twenty years in the field of finance, commerce, administration, maritime, shipping or port 
related matters. 

(3)  The  Presiding  Officer  and  members  of  the  Adjudicatory  Board  shall  be  appointed  by  the 
Central Government on the recommendation of a Selection Committee consisting of the Chief Justice 
of  India  or  his  nominee,  the  Secretary  of  the  Department  dealing  with  Shipping  and  such  other 
persons, and in such manner as may be prescribed. 

(4) The Presiding Officer and members of the Adjudicatory Board shall hold office for a term not 
exceeding five years from the date on which they enter upon their office or until they attain the age of 
seventy years, whichever is earlier. 

(5) The salaries and allowances payable to, and the other terms and conditions of service of, the 

Presiding Officer and members of the Adjudicatory Board shall be such as may be prescribed: 

Provided  that  neither  the  salary  and  allowance  nor  other  terms  and  conditions  of  service  of  the 
Presiding  Officer  or  members  of  the  Adjudicatory  Board  shall  be  varied  to  their  disadvantage  after 
their appointment. 

57. Removal and suspension of Presiding Officer and members of Adjudicatory Board.—(1) 
The Central Government may, in consultation with the Chief Justice of India or his nominee, remove 
from office of the Presiding Officer, who— 

(a) has been adjudged as an insolvent; 

(b) has become physically or mentally incapable of acting as such Presiding Officer or member; 

(c) has been convicted of an offence which, in the opinion of the Central Government, involves 

moral turpitude; 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions 

as such Presiding Officer or member; or 

(e)  has  so  abused  his  position  as  to  render  his  continuance  in  office  prejudicial  to  the  public 

interest. 

(2)  Without  prejudice  to  the  provisions  of  sub-section  (1),  the  Presiding  Officer  shall  not  be 
removed from his office except by an order made by the Central Government on the ground of proved 
misbehaviour or incapacity after an inquiry made by  the Chief Justice of India or his nominee on a 
reference made to him by the Central Government in which such Presiding Officer has been informed 

21 

 
of  the  charges  against  him  and  given  a  reasonable  opportunity  of  being  heard  in  respect  of  those 
charges. 

(3) The Central Government may, with the concurrence of the Chief Justice of India suspend from 
office, the Presiding Officer in respect of whom reference has been made to the Chief Justice of India 
under sub-section (2) until the Central Government has passed orders on receipt of the report of the 
Chief Justice of India on such reference. 

(4)  The  Central  Government  shall,  after  consultation  with  the  Supreme  Court,  make  rules  to 
regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity referred to 
in sub-section (2). 

(5)  Without  prejudice  to  the  provisions  of  sub-section  (1),  a  member  of  the  Adjudicatory  Board 
shall  not  be  removed  from  his  office  except  by  an  order  made  by  the  Central  Government  on  the 
ground  of  his  proved  misbehaviour  or  incapacity,  after  an  inquiry,  held  in  accordance  with  the 
procedure  prescribed  in  this  behalf  by  the  Central  Government,  come  to  the  conclusion  that  the 
member ought to be removed on any such ground referred to in sub-section (1). 

(6)  The  Central  Government  may  suspend  any  member  of  the  Adjudicatory  Board  in  respect  of 
whom an inquiry under sub-section (5) is being initiated or pending until the Central Government has 
passed an order on receipt of the report of the inquiry. 

58.  Powers and functions of Adjudicatory Board.—(1) The Adjudicatory Board referred to in 

section 54 shall perform the following functions, other than tariff setting, namely:— 

(a) the functions envisaged to be carried out by the erstwhile Tariff Authority for Major Ports 
arising from the Tariff Guidelines of 2005, 2008, 2013, 2018 and 2019 and tariffs orders issued by 
the said Authority; 

(b) to receive and adjudicate reference on any dispute or differences or claims relating to rights 
and obligations of Major Ports and Public Private Partnership concessionaires or captive users for 
dedicated  berth  within  the  framework  of  their  concession  agreements  and  to  pass  orders  after 
considering and hearing all the parties involved in the dispute; 

(c) to appraise, review the stressed Public Private Partnership projects as referred by the Central 

Government or the Board, and to suggest measures to revive such projects; 

(d)  to  look  into  the  complaints  received  from  port  users  against  the  services  and  terms  of 
service rendered by the Major Ports or the private operators operating in the Major Ports and to 
pass necessary orders after hearing the parties concerned; and 

(e) to look into any other matter relating to the operations of the Major Port, as may be referred 
to it by the Central Government or the Board, and to pass orders or give suggestions, as the case 
may be. 

(2)  The  procedure  to  be  adopted  by  the  Adjudicatory  Board,  while  discharging  its  functions 
referred to in sub-section (1), as well as other matters related to funding, accounts and audit of such 
Board shall be such as may be prescribed. 

(3)  Notwithstanding  anything  contained  in  any  other  law  for  the  time  being  in  force,  while 
exercising the powers under sub-section (1), the Adjudicatory Board shall have the same powers as 
are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in 
respect of the following matters, namely:— 

(a) the discovery and production of books of account and other documents, at such place and at 

such time as may be specified by the Adjudicatory Board; 

(b) summoning and enforcing the attendance of persons and examining them on oath; 

(c) issuing commissions for the examination of witnesses or documents; and 

(d) any other matter which may be prescribed. 

22 

 
(4)  Any  proceeding  before  the  Adjudicatory  Board,  shall  be  deemed  to  be  a  judicial  proceeding 
within  the  meaning  of section  193 and 228 and  for  the  purposes  of  section  196 of  the  Indian  Penal 
Code (45 of 1860), and the Adjudicatory Board shall be deemed to a civil court for all the purposes 
of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

59. Bar of jurisdiction of any court.—No other court shall have jurisdiction to entertain any suit 
for proceeding in respect of any matter falling within the scope of the Adjudicatory Board under this 
Act: 

Provided that the provisions of this section shall not apply to matters stated in section 58 that are 
referred to arbitration by the concerned parties within the framework of their respective contracts or 
concession agreements. 

60. Review and appeal.—(1) Any party aggrieved by any decision or order of the Adjudicatory 
Board  under  this  Act,  from  which  an  appeal  is  allowed  under  sub-section  (2),  but  from  which  no 
appeal has been preferred, may apply for a review of such decision before the Adjudicatory Board, in 
such form and manner and within such time, as may be prescribed, and the said Board may make such 
order thereon, as it thinks fit. 

(2) Any party aggrieved by any decision or order of the Adjudicatory Board, may file an appeal to 
the  Supreme  Court  of  India,  within  sixty  days  from  the  date  of  communication  of  such  decision  or 
order to him: 

Provided that no appeal shall lie from a decision or order passed by the Adjudicatory Board with 

the consent of parties: 

Provided further that the Supreme Court may, entertain any appeal after the expiry of sixty days, if 

it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal. 

61. Officers and employees of Adjudicatory Board.—(1) The Adjudicatory Board may, with the 
previous  approval  of  the  Central  Government,  appoint  officers  and  such  other  employees  as  it 
considers necessary for the efficient discharge of its functions under this Act. 

(2) The salaries and allowances payable to and other terms and conditions of service of the officers 

and employees of the Adjudicatory Board, shall be such as may be prescribed. 

CHAPTER VII 

PENALTIES 

62.  General  provision  for  punishment  of  offences.—Any  person  who  contravenes  any  of  the 
provisions of this Act or any rule, regulation or order made thereunder, shall be punishable with fine 
which may extend to one lakh rupees. 

63.  Offences  by  companies.—(1)  If  the  person  committing  an  offence  under  this  Act  is  a 
company,  every  person  who,  at  the  time  the  offence  was  committed  was  in  charge  of,  and  was 
responsible to, the company for the conduct of business of the company, as well as the company, shall 
be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded  against  and  punished 
accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  such 
punishment provided in this Act if he proves that the offence was committed without his knowledge 
or that he exercised all due diligence to prevent the commission of such offence. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where  an  offence  under  this  Act  has 
been committed by a company and it is proved that the offence has been committed with the consent 
or connivance of, or that the commission of the offence is attributable to any negligence on the part 
of, any director, manager, secretary or other officer of the company, such director, manager, secretary, 
or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded 
against and punished accordingly. 

Explanation.—For the purposes of this section, the expressions— 

23 

 
(a) "company" means a body corporate and includes a firm or other association of individuals; 

and 

(b) "director", in relation to a firm, means a partner in the firm. 

CHAPTER VIII 

MISCELLANEOUS 

64.  Cognizance  of  offences.—No  court  inferior  to  that  of  a  Metropolitan  Magistrate  or  Judicial 
Magistrate of the first class shall try any offence punishable under this Act or any rule or regulation 
made thereunder. 

65. Protection of action taken in good faith.—No suit or other legal proceeding shall lie against 
the Board or any Member or employee thereof or the Adjudicatory Board or the Presiding Officer or 
any member or employee thereof in respect of anything which is in good faith done or intended to be 
done under this Act or any rule or regulation made thereunder, or for any deficiency of service or any 
consequential losses on account of deficiency in services. 

66.  Employees  of  Board  or  Adjudicatory  Board  to  be  public  servants.—Every  person 
employed  by  the  Board  or  the  Adjudicatory  Board  under  this  Act,  shall  be  deemed  to  be  a  public 
servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

67. Application of other laws not barred.—The provisions of this Act shall be in addition to and 

not in derogation of the provisions of any other law for the time being in force. 

68.  Power  to  evict  certain  persons  from  premises  of  Board.—(1)  Notwithstanding  anything 
contained in any other law for the time being in force, the Board in exercise of the powers conferred 
on  it  by  regulations  made  under  this  Act  or  by  invoking  the  contractual  remedies  available  to  the 
Board  may  cancel  the  allotment  of  any  premises  made  to  any  employee  of  the  Board  or  any  other 
person or evict an employee of the Board or any person in occupation of any port asset or premises or 
area  in the port  limits,  by notice in  writing,  addressed  to  such  allottee or employee  or  other  person 
who may be in occupation or possession thereof in violation of the regulations specified or formulated 
by the Board: 

Provided  that  such  notice  shall  indicate  the  reasons  for  cancellation  of  allotment  or  eviction  or 
removal  along  with  the  period  within  which  the  removal  or  eviction  is  sought  and  recovery  of  the 
sums of dues in arrears and also for the extended unauthorised use of such premises. 

(2) If any allottee or employee or other person is aggrieved by the order made under sub-section 
(1),  then  the  said  allottee  or  employee  or  other  person  may  appeal  against  the  order  with  the 
compensation officer so appointed by the Board within thirty days from the receipt of the order under 
sub-section (1). 

(3) If any allottee or employee or other person refuses or fails to comply with an order made under 
sub-section (1), then any Magistrate of the First Class may, on application made by or on behalf of the 
Board, order any police officer, with proper assistance, to enter into the premises and evict any person 
from, and take possession of, the premises and to deliver the same to the Board or a person appointed 
by  the  Board  in  that  behalf  and  the  police  officer  may,  for  the  purpose,  use  such  force  as  may  be 
necessary. 

(4) Any such notice as is referred to in sub-section (1) may be served-- 

(a) by delivering or tendering it to the allottee or employee or any other person who may be in 

occupation or possession of the whole or any part of the premises; or 

(b)  if  it  cannot  be  so  delivered  or  tendered,  by  affixing  it  on  the  outer  door  or  some  other 

conspicuous part of the premises; or 

24 

 
 
 
 
(c) by registered post; or 

(d) by publishing in the local newspaper having circulation in the area. 

Explanation.— For  the  purposes  of  this  section,  the  expression  "premises"  means  any  land, 

building or part of a building which is part of port assets and includes— 

(i)  areas  such  as  canteens,  gardens,  grounds  and  out-houses,  if  any,  appertaining  to  such 

building or part of a building; 

(ii) any fittings affixed to such building or part of a building for the more beneficial enjoyment 

thereof; and 

(iii) any furniture, books or other things belonging to the Board and found in such building or 

part of a building. 

69.  Alternate  remedy  by suit.—Without prejudice to  any  other  action  that  may  be  taken  under 
this  Act,  the  Board  may  recover  by  suit  any  rates,  damages,  expenses,  costs,  or  in  case  of  sale  the 
balance thereof, when the proceeds of sale are insufficient, or any penalties payable to, or recoverable 
by, the Board under this Act or under any regulations made in pursuance thereof. 

70.  Corporate  Social  Responsibility  and  development  of  infrastructure  by  Board.—(1)  The 
Board may use its funds for providing social benefits including development of infrastructure in areas 
of education, health, housing, accommodation, skill development, training and recreational activities 
for its own employees, customers, business partners, Government and Non-Government Organisation, 
local communities, environment and society at large. 

(2) The manner of utilisation of funds for the Corporate Social Responsibility shall be such, as may 

be prescribed. 

Explanation.—For the purposes of this section, the expression "Corporate Social Responsibility" 
means the activities, to be undertaken by the concerned Major Port, as referred to in sub-section (1) 
and section 135 of the Companies Act, 2013 (18 of 2013). 

71.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules for carrying out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may 

provide for all or any of the following matters, namely:— 

(a)  the  composition  of  the  Selection  Committee  and  the  manner  of  appointment  of  the 

Chairperson and Deputy Chairperson of the Board under sub-section (1) of section 4; 

(b)  the  manner  of  appointment  of  Members  of  the  Board  under  sub-sections  (2)  and  (3)  of 

section 4; 

(c) the procedure for conducting any inquiry made under sub-section (2) of section 5; 

(d) the honorarium payable to the Independent Members under section 11; 

(e) the parameters for creation of Master Plan under section 25; 

(f)  the norms  for fixation  and  implementation  of  scales, fees, rates  and  conditions  under  sub-

section (1) of section 27; 

(g)  the  form,  manner  and  fees  for  filing  application  before  the  Adjudicatory  Board  under 

section 32; 

(h) the manner of applying the sums under sub-section (3) of section 40; 

(i) the purposes for which the monies received by the Board shall be applied under sub-section 

(3) of section 43; 

(j) the form in which the Board shall prepare an annual report under sub-section (1) of section 

44; 

25 

 
(k) the manner of appointment of the Presiding Officer and members of the Adjudicatory Board 

under sub-section (3) of section 56; 

(l)  the  salaries  and  allowances  payable  to  and  other  terms  and  conditions  of  services  of  the 

Presiding Officer and members of the Adjudicatory Board under sub-section (5) of section 56; 

(m) the procedure for conducting an inquiry under sub-section (5) of section 57; 

(n) the procedure to be adopted by the Adjudicatory Board under sub-section (2) of section 58; 

(o) other functions of the Adjudicatory Board under clause (d) of sub-section (3) of section 58; 

(p)  the  form  and  manner  for  applying  of  a  review  before  the  Adjudicatory  Board  under  sub-

section (1) of section 60; 

(q)  the  salaries  and  allowances  payable  to  and  the  other  terms  and  conditions  of  service  of 

officers and employees of the Adjudicatory Board under sub-section (2) of section 61; 

(r) the manner of utilisation of funds for Corporate Social Responsibility under sub-section (2) 

of section 70; and 

(s)  any  other  matter  which  is  required  to  be,  or  may  be,  prescribed,  or  in  respect  of  which 

provision is to be made, by rules. 

72. Power of Board to make regulations.—(1) The Board may, with the previous approval of the 
Central Government and after previous publication, by notification, shall make regulations consistent 
with this Act and the rules made there under to carry out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations 

may provide for all or any of the following matters, namely:— 

(a) rules of procedure for transaction of business under sub-section (1) of section 13; 

(b) rules of procedure for transaction of business under sub-section (2) of section 14; 

(c) the appointment of employees under clause (b) of sub-section (1) of section 18; 

(d) the use and development of the port assets under sub-section (2) of section 22; 

(e) the form and manner in which contracts shall be made by the Board under sub-section (3) of 

section 24; 

(f) the purposes of planning and development of Major Port under sub-section (1) of section 26; 

(g) the form of port security under sub-section (3) of section 33; 

(h) the issuance of duplicate or new security under sub-section (1) of section 36; and 

(i) any other matter which is required to be, or may be, specified by the regulations or in respect 

of which provision is to be made by the regulations. 

73.  Laying  of  rules  and  regulations.—Every  rule  made  by  the  Central  Government,  every 
regulation made by the Board and every notification issued by the Central Government under this Act 
shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session 
for a total period of thirty days which may be comprised in one session or in two or more successive 
sessions, and if, before the expiry of the session, immediately following the session or the successive 
sessions  aforesaid,  both  Houses  agree  in  making  any  modification  in  the  rule,  regulation  or 
notification or both Houses agree that the rule, regulation or notification should not be made, the rule, 
regulation or notification shall thereafter have effect only in such modified form or be of no effect, as 
the case may be; so, however, that any such modification or annulment shall be without prejudice to 
the validity of anything previously done under that rule, regulation or notification. 

74. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this  Act,  the  Central  Government  may,  by  order,  published  in  the  Official  Gazette,  make  such 
provisions  not  inconsistent  with  the  provisions  of  this  Act,  as  appears  to  it  to  be  necessary  or 
expedient for removing the difficulty: 

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Provided that no such order shall be made in respect of a Major Port after the expiry of a period of 

three years from the date on which this Act is made applicable to that Major Port. 

(2) Every order made  under this section shall be laid, as soon as may be after it is made, before 

each House of Parliament. 

75. Repeal and savings.—(1) The Major Port Trusts Act, 1963 (38 of 1963) is here by repealed. 

(2) Notwithstanding the repeal of the Major Port Trusts Act, 1963 (38 of 1963) under sub-section 

(1),— 

(a)  anything  done  primarily  by  the  Board  of  Trustees  and  Tariff  Authority  for  Major  Ports 
under the Major Port Trusts Act, 1963 (38 of 1963) in respect of any rule, notification, inspection, 
order  or  notice  made  or  issued  or  any  appointment  or  declaration  made  or  any  operation 
undertaken or any direction given or any proceeding taken or any penalty, punishment, forfeiture 
or fine imposed under the Major Port Trusts Act, 1963, shall, insofar as it is not inconsistent with 
the  provisions  of  this  Act,  be  deemed  to  have  been  done  or  taken  under  the  corresponding 
provisions of this Act; 

(b)  any  order,  rule,  notification,  regulation,  appointment,  conveyance,  mortgage,  deed,  trust, 
special  purpose  vehicle,  joint  venture,  document  or  agreement  made,  fee  directed,  resolution 
passed, direction given, proceeding taken, instrument executed or issued, or thing done under or in 
pursuance  of  the  repealed  Major  Port  Trusts  Act,  1963  (38  of  1963),  shall,  if  in  force  at  the 
commencement of this Act and not inconsistent with the provisions of this Act, continue to be in 
force,  and  shall  have  effect  as  if  made,  directed,  passed,  given,  taken,  executed,  issued  or  done 
under or in pursuance of this Act; 

(c) any principle or rule of law, or established jurisdiction, form or course of pleading, practice 
or  procedure  or  existing  usage,  custom,  privilege,  restriction  or  exemption  shall  not  be  affected, 
notwithstanding that the same respectively may have been in any manner affirmed or recognised or 
derived by, in, or from, the repealed Major Port Trusts Act, 1963 (38 of 1963); 

(d) any person appointed to any office under or by virtue of the repealed Major Port Trusts Act, 
1963 (38 of 1963) shall be deemed to have been appointed to that office under or by virtue of this 
Act; 

(e)  any  jurisdiction,  custom,  liability,  right,  title,  privilege,  restriction,  exemption,  usage, 
practice,  procedure  or  other  matter  or  thing  not  in  existence  or  in  force  shall  not  be  revised  or 
restored; 

(f)  any  documents  and  any  funds  constituted  and  established  under  the  repealed  enactments 
shall  be  deemed  to  be  documents  and  funds  constituted  or  established  under  the  corresponding 
provisions of this Act; 

(g) any prosecution instituted under the repealed enactments and pending immediately before 
the  commencement  of  this  Act  before  any  Court  shall,  subject  to  the  provisions  of  this  Act, 
continue to be heard and disposed of by the said Court; 

(h) any inspection, investigation or inquiry ordered to be done under the repealed  Major Port 
Trusts  Act,  1963  (38  of  1963)  shall  continue  to  be  proceeded  with  as  if  such  inspection, 
investigation or inquiry has been ordered under the corresponding provisions of this Act; and 

(i) the application of this Act to the port of Mumbai, the  Bombay Port Trust Act, 1879 (6 of 
1879) and the port of Kolkata, the Calcutta Port Act, 1890 (3 of 1890), in so far as the said Acts 
apply  to  municipal  assessment  of  the  properties  of  the  port  of  Mumbai  and  port  of  Kolkata  and 
matters connected therewith, shall continue to so apply. 

(3) The mention of particular matters in sub-section (2) shall not be held to prejudice the general 
application  of section  6 of  the  General  Clauses  Act,  1897  (10  of  1897)  with  regard  to  the  effect  of 
repeal of the Major Port Trusts Act, 1963 (38 of 1963). 

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76.  Transitional  provision.—Notwithstanding  anything  contained  in  this  Act,  the  Board  of 
Trustees functioning as such immediately before the commencement of this Act shall continue to so 
function until the Board for each Major Port is constituted under this Act, but on the constitution of 
such  Board,  under  this  Act,  the  Members  of  the  Board  of  Trustees  holding  office  before  such 
constitution shall cease to hold office. 

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